HES
$37.17
Hess
$2.03
5.78%
Earnings Details
Quarter December 2019
Wednesday, January 29, 2020 7:30:00 AM
Tweet Share Watch
Summary

Hess Misses

Hess (HES) reported a Quarter December 2019 loss of $0.60 per share on revenue of $1.7 billion. The consensus estimate was a loss of $0.56 per share on revenue of $1.6 billion. The Earnings Whisper number was for a loss of $0.40 per share. Revenue grew 1.0% on a year-over-year basis.

Hess Corp is a Exploration and Production (E&P) company that develops, produces, purchases, transports and sells crude oil and natural gas. The Company operates in two segments: E&P and Retail Marketing.

Results
Reported Earnings
($0.60)
Earnings Whisper
($0.40)
Consensus Estimate
($0.56)
Reported Revenue
$1.70 Bil
Revenue Estimate
$1.57 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Hess Reports Estimated Results for the Fourth Quarter Of 2019

Key Developments:

  • Commenced production on December 20, 2019 from the Liza Phase 1 Development at the Stabroek Block (Hess – 30 percent), offshore Guyana
  • Announced a 15th discovery at the Mako-1 exploration well located approximately 6 miles southeast of the Liza Field in December
  • Increased estimate of gross discovered recoverable resources for the Stabroek Block to more than 8 billion barrels of oil equivalent (boe) from the prior estimate of 6 billion boe
  • Announced a 16th discovery at Uaru located approximately 10 miles northeast of the Liza Field in January 2020; the discovery will be incremental to new resources estimate
  • Hess Corporation received approximately $300 million in cash and owns approximately 47 percent of Hess Midstream LP on a consolidated basis upon closing of its previously announced acquisition of Hess Infrastructure Partners LP

Fourth Quarter Financial and Operational Highlights:

  • Net loss was $222 million, or $0.73 per common share, compared with a net loss of $4 million, or $0.05 per common share, in the fourth quarter of 2018
  • Adjusted net loss1 was $180 million, or $0.60 per common share, compared with an adjusted net loss of $77 million, or $0.31 per common share, in the fourth quarter of last year
  • Oil and gas net production averaged 316,000 barrels of oil equivalent per day (boepd), excluding Libya, up from 267,000 boepd in the fourth quarter of 2018; Bakken net production was 174,000 boepd, up 38 percent from 126,000 boepd in the prior-year quarter
  • Exploration and Production (E&P) capital and exploratory expenditures were $876 million, compared with $618 million in the prior-year quarter
  • Cash and cash equivalents, excluding Midstream, were $1.54 billion at December 31, 2019
  • Year-end proved reserves were 1,197 million boe; reserve replacement for 2019 was 104 percent (134 percent excluding price revisions)

2020 Guidance:

  • E&P capital and exploratory expenditures are expected to be $3.0 billion
  • Oil and gas production, excluding Libya, is forecast to be in the range of 330,000 boepd to 335,000 boepd, compared to full year 2019 net production, excluding Libya, of 290,000 boepd

NEW YORK--(BUSINESS WIRE)--Hess Corporation (NYSE: HES) today reported a net loss of $222 million, or $0.73 per common share, in the fourth quarter of 2019, compared with a net loss of $4 million, or $0.05 per common share, in the fourth quarter of 2018. On an adjusted basis, the Corporation reported a net loss of $180 million, or $0.60 per common share, in the fourth quarter of 2019, compared with an adjusted net loss of $77 million, or $0.31 per common share, in the prior-year quarter. The decrease in after-tax adjusted results primarily reflects lower natural gas and natural gas liquids realized selling prices, partially offset by higher production volumes and improved Midstream earnings, compared with the prior-year quarter.

     “Our company had an outstanding year, achieving a number of important milestones and delivering higher production and lower capital and exploratory expenditures for the year than our guidance,” Chief Executive Officer John Hess said. “We look forward to continuing this momentum into 2020 and future years as we execute our differentiated long term strategy.”

     After-tax income (loss) by major operating activity was as follows:

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

(unaudited)

 

 

(unaudited)

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(In millions, except per share amounts)

 

Net Income (Loss) Attributable to Hess Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exploration and Production

 

$

(64

)

 

$

(5

)

 

$

53

 

 

$

51

 

Midstream

 

 

33

 

 

 

32

 

 

 

144

 

 

 

120

 

Corporate, Interest and Other

 

 

(191

)

 

 

(31

)

 

 

(605

)

 

 

(453

)

Net income (loss) attributable to Hess Corporation

 

$

(222

)

 

$

(4

)

 

$

(408

)

 

$

(282

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share (diluted) (a)

 

$

(0.73

)

 

$

(0.05

)

 

$

(1.37

)

 

$

(1.10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Loss) Attributable to Hess Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exploration and Production

 

$

(124

)

 

$

(5

)

 

$

(10

)

 

$

137

 

Midstream

 

 

49

 

 

 

32

 

 

 

160

 

 

 

120

 

Corporate, Interest and Other

 

 

(105

)

 

 

(104

)

 

 

(431

)

 

 

(433

)

Adjusted net income (loss) attributable to Hess Corporation

 

$

(180

)

 

$

(77

)

 

$

(281

)

 

$

(176

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (loss) per common share (diluted) (a)

 

$

(0.60

)

 

$

(0.31

)

 

$

(0.95

)

 

$

(0.74

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares (diluted)

 

302.8

 

 

 

291.5

 

 

 

301.2

 

 

 

298.2

 

(a)

Calculated as net income (loss) attributable to Hess Corporation less preferred stock dividends, divided by weighted average number of diluted shares.

Exploration and Production:

     E&P net loss was $64 million in the fourth quarter of 2019, compared with a net loss of $5 million in the fourth quarter of 2018. On an adjusted basis, E&P’s fourth quarter 2019 net loss was $124 million. The Corporation’s average realized crude oil selling price, including the effect of hedging, was $54.90 per barrel in the fourth quarter of 2019, versus $55.24 per barrel in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the fourth quarter of 2019 was $13.87 per barrel, versus $21.19 per barrel in the prior-year quarter, while the average realized natural gas selling price was $3.48 per mcf, compared with $4.82 per mcf in the fourth quarter of 2018.

     Net production, excluding Libya, was 316,000 boepd in the fourth quarter of 2019, up from fourth quarter 2018 net production of 267,000 boepd. The higher production was primarily driven by the Bakken. Libya net production was 22,000 boepd in both the fourth quarter of 2019 and 2018.

     Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $12.59 per boe in the fourth quarter, compared with $12.60 per boe in the prior-year quarter. Excluding items affecting comparability of earnings between periods, income tax expense is comprised primarily of taxes in Libya.

Oil and Gas Reserve Estimates:

     Oil and gas proved reserves at December 31, 2019, which are subject to final review, were 1,197 million boe, compared with 1,192 million boe at December 31, 2018. Net proved reserve additions and revisions in 2019 of 121 million boe, included net negative revisions due to lower commodity prices of 35 million boe. The net additions and revisions were primarily related to the Bakken and Guyana. The Corporation replaced 104 percent of its 2019 production (134 percent excluding price revisions) at a finding, development and acquisition cost of approximately $22.70 per boe ($17.60 per boe excluding price revisions).

Operational Highlights for the Fourth Quarter of 2019:

     Bakken (Onshore U.S.): Net production from the Bakken increased 38 percent to 174,000 boepd from 126,000 boepd in the prior-year quarter, with net oil production up 28 percent to 106,000 barrels of oil per day (bopd) from 83,000 bopd, primarily due to increased drilling activity and new plug and perf well completion design. Natural gas and NGL production was also higher due to the increased drilling activity, additional natural gas captured from the Little Missouri 4 natural gas processing plant that commenced operations in late July 2019, and additional volumes received under percentage of proceeds contracts resulting from lower prices. The Corporation operated six rigs in the fourth quarter, drilling 42 wells, completing 37 wells and bringing 59 new wells online.

     Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 70,000 boepd, compared with 68,000 boepd in the prior-year quarter. The Esox-1 oil discovery in Mississippi Canyon (Hess – 57 percent) has been successfully completed and will be brought online in February as a low cost tieback to the Tubular Bells production facilities. At the Oldfield exploration well in Mississippi Canyon (Hess – 60 percent), the operator, Kosmos Energy, announced the well did not encounter commercial quantities of hydrocarbons. Exploration expense in the fourth quarter includes $15 million for well costs incurred through December 31, 2019.

     Guyana (Offshore): At the Stabroek Block, the operator, Esso Exploration and Production Guyana Limited, achieved first production from the Liza Field using the Liza Destiny floating production, offloading, and storage (FPSO) vessel on December 20, 2019. Production is expected to ramp up to the full capacity of 120,000 gross bopd in the coming months, with the first one million barrel of oil cargo allocated to Hess scheduled to be sold in March 2020.

     A second FPSO, Liza Unity, with an expected capacity of up to 220,000 gross bopd is under construction for the Liza Phase 2 development, with first oil expected by mid-2022. A third development, Payara, is expected to be sanctioned following government and regulatory approvals and is expected to produce up to 220,000 gross bopd with startup as early as 2023.

     In December 2019, the Corporation announced a 15th discovery at the Mako-1 exploration well, which encountered approximately 164 feet of high-quality oil-bearing sandstone reservoir and is located approximately 6 miles southeast of the Liza Field. Earlier this week, the Corporation announced a 16th discovery at Uaru located approximately 10 miles northeast of the Liza Field, which encountered 94 feet of high-quality oil-bearing sandstone reservoir. The company also announced an increase in the estimated gross discovered recoverable resources for the Stabroek Block to more than 8 billion boe, up from the previous estimate of 6 billion boe. The new recoverable resources estimate includes 15 discoveries offshore Guyana through yearend 2019. The Uaru discovery is the first of 2020 and will be added to the resources estimate at a later date.

Midstream:

     The Midstream segment had net income of $33 million in the fourth quarter of 2019, compared with net income of $32 million in the prior-year quarter. On an adjusted basis, fourth quarter 2019 net income was $49 million. The improved fourth quarter 2019 results primarily reflect higher throughput volumes.

     In December 2019, Hess Midstream Operations LP (formerly, Hess Midstream Partners LP) (HESM) completed its previously announced acquisition of Hess Infrastructure Partners LP (HIP), including HIP’s 80 percent interest in HESM’s oil and gas midstream assets, HIP’s water services business and the outstanding economic general partner interest and incentive distribution rights in HESM. In addition, HESM’s organizational structure converted from a master limited partnership into an “Up-C” structure in which HESM’s public unitholders received newly issued securities in a new public entity named “Hess Midstream LP” (Hess Midstream). Upon completion of the transaction, Hess Corporation received approximately $300 million in cash and owns approximately 47 percent of Hess Midstream on a consolidated basis. The transaction was non-taxable to Hess Corporation.

Corporate, Interest and Other:

     After-tax expense for Corporate, Interest and Other was $191 million in the fourth quarter of 2019, compared with $31 million in the fourth quarter of 2018. On an adjusted basis, after-tax expense was $105 million in the fourth quarter of 2019, compared with $104 million in the prior-year quarter.

Capital and Exploratory Expenditures:

     E&P capital and exploratory expenditures were $876 million in the fourth quarter of 2019, compared with $618 million in the prior-year quarter, primarily reflecting greater activity in Guyana, the Bakken, and the Gulf of Mexico.

     Midstream capital expenditures were $108 million in the fourth quarter of 2019, up from $67 million in the prior-year quarter.

Liquidity:

     Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $1.54 billion and debt and finance lease obligations totaling $5.64 billion at December 31, 2019. The Corporation’s debt to capitalization ratio, including finance leases, was 43.2 percent at December 31, 2019 and 38.0 percent at December 31, 2018.

     The Midstream segment had cash and cash equivalents of $3 million and total debt of $1,753 million at December 31, 2019. In December 2019, as part of the HIP acquisition, HESM assumed $800 million of outstanding HIP notes and issued $550 million of new 5.125% senior notes due in 2028. In addition, the existing credit facilities at HIP and HESM were terminated and HESM entered into a new $1.0 billion 5-year revolving credit facility and $400 million 5-year Term Loan A facility. Proceeds from borrowings and the new notes were primarily used to fund the acquisition of HIP. The notes and the credit facilities are non-recourse to Hess Corporation.

     Net cash provided by operating activities was $286 million in the fourth quarter of 2019, down from $881 million in the fourth quarter of 2018. Net cash provided by operating activities before changes in operating assets and liabilities2 was $520 million in the fourth quarter of 2019, which includes $30 million of nonrecurring transaction related costs for HESM’s acquisition of HIP and corporate restructuring, compared with $588 million in the prior-year quarter. Changes in operating assets and liabilities were a net outflow of $234 million in the fourth quarter of 2019, driven by premiums paid on calendar year 2020 crude oil hedge contracts.

Items Affecting Comparability of Earnings Between Periods:

     The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods:

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

(unaudited)

 

 

(unaudited)

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(In millions)

 

Exploration and Production

 

$

60

 

 

$

 

 

$

63

 

 

$

(86

)

Midstream

 

 

(16

)

 

 

 

 

 

(16

)

 

 

 

Corporate, Interest and Other

 

 

(86

)

 

 

73

 

 

 

(174

)

 

 

(20

)

Total items affecting comparability of earnings between periods

 

$

(42

)

 

$

73

 

 

$

(127

)

 

$

(106

)

     Fourth Quarter 2019: E&P results include a noncash income tax benefit of $60 million resulting from the reversal of a valuation allowance against net deferred tax assets in Guyana upon achieving first production. Midstream results include a pre-tax charge of $30 million ($16 million after noncontrolling interests) for nonrecurring transaction related costs for HESM’s acquisition of HIP and corporate restructuring. Corporate, Interest and Other results include an allocation of noncash income tax expense of $86 million that was previously a component of accumulated other comprehensive income related to our 2019 crude oil hedge contracts.

     Fourth Quarter 2018: Corporate, Interest and Other results included an allocation of noncash income tax benefit of $73 million to offset the recognition of a noncash income tax expense recorded in other comprehensive income that resulted from changes in fair value of crude oil hedge contracts for 2019.

Reconciliation of U.S. GAAP to Non-GAAP measures:

     The following table reconciles reported net income (loss) attributable to Hess Corporation and adjusted net income (loss):

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

(unaudited)

 

 

(unaudited)

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(In millions)

 

Net income (loss) attributable to Hess Corporation

 

$

(222

)

 

$

(4

)

 

$

(408

)

 

$

(282

)

Less: Total items affecting comparability of earnings between periods

 

 

(42

)

 

 

73

 

 

 

(127

)

 

 

(106

)

Adjusted net income (loss) attributable to Hess Corporation

 

$

(180

)

 

$

(77

)

 

$

(281

)

 

$

(176

)

     The following table reconciles reported net cash provided by (used in) operating activities from net cash provided by (used in) operating activities before changes in operating assets and liabilities:

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

(unaudited)

 

 

(unaudited)

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(In millions)

 

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

 

$

520

 

 

$

588

 

 

$

2,237

 

 

$

2,129

 

Changes in operating assets and liabilities

 

 

(234

)

 

 

293

 

 

 

(595

)

 

 

(190

)

Net cash provided by (used in) operating activities

 

$

286

 

 

$

881

 

 

$

1,642

 

 

$

1,939

 

Hess Corporation will review fourth quarter financial and operating results and other matters on a webcast at 10 a.m. today (EDT). For details about the event, refer to the Investor Relations section of our website at www.hess.com.

Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at www.hess.com.

Forward-looking Statements

Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, uncertainties inherent in the measurement and interpretation of geological, geophysical and other technical data. Estimates and projections contained in this release are based on the Corporation’s current understanding and assessment based on reasonable assumptions. Actual results may differ materially from these estimates and projections due to certain risk factors discussed in the Corporation’s periodic filings with the Securities and Exchange Commission (SEC) and other factors.

Non-GAAP financial measures

The Corporation has used non-GAAP financial measures in this earnings release. “Adjusted net income (loss)” presented in this release is defined as reported net income (loss) attributable to Hess Corporation excluding items identified as affecting comparability of earnings between periods. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” presented in this release is defined as Net cash provided by (used in) operating activities excluding changes in operating assets and liabilities. Management uses adjusted net income (loss) to evaluate the Corporation’s operating performance and believes that investors’ understanding of our performance is enhanced by disclosing this measure, which excludes certain items that management believes are not directly related to ongoing operations and are not indicative of future business trends and operations. Management believes that net cash provided by (used in) operating activities before changes in operating assets and liabilities demonstrates the Corporation’s ability to internally fund capital expenditures, pay dividends and service debt. These measures are not, and should not be viewed as, a substitute for U.S. GAAP net income (loss) or net cash provided by (used in) operating activities. A reconciliation of reported net income (loss) attributable to Hess Corporation (U.S. GAAP) to adjusted net income (loss), and a reconciliation of net cash provided by (used in) operating activities (U.S. GAAP) to net cash provided by (used in) operating activities before changes in operating assets and liabilities are provided in the release.

Cautionary Note to Investors

We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources. Investors are urged to consider closely the oil and gas disclosures in Hess Corporation’s Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system.

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

 

 

 

Fourth

 

 

Fourth

 

 

Third

 

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

 

2019

 

 

2018

 

 

2019

 

Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues and non-operating income

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other operating revenues

 

$

1,683

 

 

$

1,650

 

 

$

1,580

 

Other, net

 

 

16

 

 

 

32

 

 

 

(65

)

Total revenues and non-operating income

 

 

1,699

 

 

 

1,682

 

 

 

1,515

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

Marketing, including purchased oil and gas

 

 

428

 

 

 

472

 

 

 

423

 

Operating costs and expenses

 

 

365

 

 

 

292

 

 

 

321

 

Production and severance taxes

 

 

52

 

 

 

43

 

 

 

47

 

Exploration expenses, including dry holes and lease impairment

 

 

106

 

 

 

91

 

 

 

50

 

General and administrative expenses

 

 

131

 

 

 

91

 

 

 

90

 

Interest expense

 

 

95

 

 

 

99

 

 

 

90

 

Depreciation, depletion and amortization

 

 

586

 

 

 

533

 

 

 

544

 

Total costs and expenses

 

 

1,763

 

 

 

1,621

 

 

 

1,565

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

(64

)

 

 

61

 

 

 

(50

)

Provision (benefit) for income taxes

 

 

119

 

 

 

27

 

 

 

116

 

Net income (loss)

 

 

(183

)

 

 

34

 

 

 

(166

)

Less: Net income (loss) attributable to noncontrolling interests

 

 

39

 

 

 

38

 

 

 

46

 

Net income (loss) attributable to Hess Corporation

 

 

(222

)

 

 

(4

)

 

 

(212

)

Less: Preferred stock dividends

 

 

 

 

 

12

 

 

 

 

Net income (loss) attributable to Hess Corporation common stockholders

 

$

(222

)

 

$

(16

)

 

$

(212

)

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues and non-operating income

 

 

 

 

 

 

 

 

Sales and other operating revenues

 

$

6,495

 

 

$

6,323

 

Gains (losses) on asset sales, net

 

 

22

 

 

 

32

 

Other, net

 

 

(7

)

 

 

111

 

Total revenues and non-operating income

 

 

6,510

 

 

 

6,466

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

Marketing, including purchased oil and gas

 

 

1,736

 

 

 

1,771

 

Operating costs and expenses

 

 

1,237

 

 

 

1,134

 

Production and severance taxes

 

 

184

 

 

 

171

 

Exploration expenses, including dry holes and lease impairment

 

 

233

 

 

 

362

 

General and administrative expenses

 

 

397

 

 

 

473

 

Interest expense

 

 

380

 

 

 

399

 

Loss on debt extinguishment

 

 

 

 

 

53

 

Depreciation, depletion and amortization

 

 

2,122

 

 

 

1,883

 

Total costs and expenses

 

 

6,289

 

 

 

6,246

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

221

 

 

 

220

 

Provision (benefit) for income taxes

 

 

461

 

 

 

335

 

Net income (loss)

 

 

(240

)

 

 

(115

)

Less: Net income (loss) attributable to noncontrolling interests

 

 

168

 

 

 

167

 

Net income (loss) attributable to Hess Corporation

 

 

(408

)

 

 

(282

)

Less: Preferred stock dividends

 

 

4

 

 

 

46

 

Net income (loss) attributable to Hess Corporation common stockholders

 

$

(412

)

 

$

(328

)

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

Balance Sheet Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,545

 

 

$

2,694

 

Other current assets

 

 

1,611

 

 

 

1,765

 

Property, plant and equipment – net

 

 

16,814

 

 

 

16,083

 

Operating lease right-of-use assets – net

 

 

447

 

 

 

 

Finance lease right-of-use assets – net

 

 

299

 

 

 

 

Other long-term assets

 

 

1,066

 

 

 

891

 

Total assets

 

$

21,782

 

 

$

21,433

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

 

 

$

67

 

Current portion of operating and finance lease obligations

 

 

199

 

 

 

 

Other current liabilities

 

 

2,311

 

 

 

2,136

 

Long-term debt

 

 

7,142

 

 

 

6,605

 

Long-term operating lease obligations

 

 

353

 

 

 

 

Long-term finance lease obligations

 

 

238

 

 

 

 

Other long-term liabilities

 

 

1,833

 

 

 

1,737

 

Total equity excluding other comprehensive income (loss)

 

 

9,431

 

 

 

9,935

 

Accumulated other comprehensive income (loss)

 

 

(699

)

 

 

(306

)

Noncontrolling interests

 

 

974

 

 

 

1,259

 

Total liabilities and equity

 

$

21,782

 

 

$

21,433

 

 

 

 

December 31,

 

 

 

2019

 

 

2018 (a)

 

Total Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hess Corporation

 

$

5,389

 

 

$

5,691

 

Midstream (b)

 

 

1,753

 

 

 

981

 

Hess Consolidated

 

$

7,142

 

 

$

6,672

 

(a)

Prior to adoption of ASC 842, Leases, finance lease obligations were included in debt.

(b)

Midstream debt is non-recourse to Hess Corporation.

 

 

December 31,

 

 

 

2019

 

 

2018

 

Debt to capitalization ratio (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hess Consolidated

 

 

43.2

%

 

 

38.0

%

(a)

Includes finance lease obligations.

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross interest expense – Hess Corporation

 

$

88

 

 

$

90

 

 

$

355

 

 

$

359

 

Less: Capitalized interest – Hess Corporation

 

 

(11

)

 

 

(6

)

 

 

(38

)

 

 

(20

)

Interest expense – Hess Corporation

 

 

77

 

 

 

84

 

 

 

317

 

 

 

339

 

Interest expense – Midstream (a)

 

 

18

 

 

 

15

 

 

 

63

 

 

 

60

 

Interest expense – Consolidated

 

$

95

 

 

$

99

 

 

$

380

 

 

$

399

 

(a)

Midstream interest expense is reported in the Midstream operating segment.

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

 

 

 

Fourth

 

 

Fourth

 

 

Third

 

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

 

2019

 

 

2018

 

 

2019

 

Cash Flow Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(183

)

 

$

34

 

 

$

(166

)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

586

 

 

 

533

 

 

 

544

 

Exploratory dry hole costs

 

 

39

 

 

 

33

 

 

 

10

 

Exploration lease and other impairment

 

 

3

 

 

 

9

 

 

 

3

 

Pension settlement loss

 

 

5

 

 

 

4

 

 

 

88

 

Stock compensation expense

 

 

19

 

 

 

19

 

 

 

18

 

Noncash (gains) losses on commodity derivatives, net

 

 

29

 

 

 

48

 

 

 

29

 

Provision (benefit) for deferred income taxes and other tax accruals

 

 

22

 

 

 

(92

)

 

 

(4

)

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

 

 

520

 

 

 

588

 

 

 

522

 

Changes in operating assets and liabilities

 

 

(234

)

 

 

293

 

 

 

(79

)

Net cash provided by (used in) operating activities

 

 

286

 

 

 

881

 

 

 

443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Additions to property, plant and equipment - E&P

 

 

(713

)

 

 

(589

)

 

 

(635

)

Additions to property, plant and equipment - Midstream

 

 

(112

)

 

 

(75

)

 

 

(74

)

Payments for Midstream equity investments

 

 

 

 

 

 

 

 

(10

)

Other, net

 

 

 

 

 

(1

)

 

 

(2

)

Net cash provided by (used in) investing activities

 

 

(825

)

 

 

(665

)

 

 

(721

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Net borrowings (repayments) of debt with maturities of 90 days or less

 

 

(144

)

 

 

 

 

 

16

 

Debt with maturities of greater than 90 days:

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

 

760

 

 

 

 

 

 

 

Repayments

 

 

 

 

(23

)

 

 

(3

)

Payments on finance lease obligations

 

 

(2

)

 

 

 

 

 

(2

)

Common stock acquired and retired

 

 

 

 

 

(245

)

 

 

 

Cash dividends paid

 

 

(75

)

 

 

(83

)

 

 

(77

)

Noncontrolling interests, net

 

 

(312

)

 

 

(175

)

 

 

(14

)

Other, net

 

 

(6

)

 

 

 

 

 

13

 

Net cash provided by (used in) financing activities

 

 

221

 

 

 

(526

)

 

 

(67

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Increase (Decrease) in Cash and Cash Equivalents

 

 

(318

)

 

 

(310

)

 

 

(345

)

Cash and Cash Equivalents at Beginning of Period

 

 

1,863

 

 

 

3,004

 

 

 

2,208

 

Cash and Cash Equivalents at End of Period

 

$

1,545

 

 

$

2,694

 

 

$

1,863

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to Property, Plant and Equipment included within Investing Activities:

 

Capital expenditures incurred

 

$

(920

)

 

$

(636

)

 

$

(736

)

Increase (decrease) in related liabilities

 

 

95

 

 

 

(28

)

 

 

27

 

Additions to property, plant and equipment

 

$

(825

)

 

$

(664

)

 

$

(709

)

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

 

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

Cash Flow Information

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(240

)

 

$

(115

)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

(Gains) losses on asset sales, net

 

 

(22

)

 

 

(32

)

Depreciation, depletion and amortization

 

 

2,122

 

 

 

1,883

 

Exploratory dry hole costs

 

 

49

 

 

 

165

 

Exploration lease and other impairment

 

 

17

 

 

 

37

 

Pension settlement loss

 

 

93

 

 

 

4

 

Stock compensation expense

 

 

85

 

 

 

72

 

Noncash (gains) losses on commodity derivatives, net

 

 

116

 

 

 

182

 

Provision (benefit) for deferred income taxes and other tax accruals

 

 

17

 

 

 

(120

)

Loss on debt extinguishment

 

 

 

 

 

53

 

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

 

 

2,237

 

 

 

2,129

 

Changes in operating assets and liabilities

 

 

(595

)

 

 

(190

)

Net cash provided by (used in) operating activities

 

 

1,642

 

 

 

1,939

 

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

 

 

 

 

Additions to property, plant and equipment - E&P

 

 

(2,433

)

 

 

(1,854

)

Additions to property, plant and equipment - Midstream

 

 

(396

)

 

 

(243

)

Payments for Midstream equity investments

 

 

(33

)

 

 

(67

)

Proceeds from asset sales, net of cash sold

 

 

22

 

 

 

607

 

Other, net

 

 

(3

)

 

 

(9

)

Net cash provided by (used in) investing activities

 

 

(2,843

)

 

 

(1,566

)

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

 

 

 

Net borrowings (repayments) of debt with maturities of 90 days or less

 

 

32

 

 

 

 

Debt with maturities of greater than 90 days:

 

 

 

 

 

 

 

 

Borrowings

 

 

760

 

 

 

 

Repayments

 

 

(8

)

 

 

(633

)

Payments on finance lease obligations

 

 

(49

)

 

 

 

Common stock acquired and retired

 

 

(25

)

 

 

(1,365

)

Cash dividends paid

 

 

(316

)

 

 

(345

)

Noncontrolling interests, net

 

 

(353

)

 

 

(211

)

Other, net

 

 

11

 

 

 

28

 

Net cash provided by (used in) financing activities

 

 

52

 

 

 

(2,526

)

 

 

 

 

 

 

 

 

 

Net Increase (Decrease) in Cash and Cash Equivalents

 

 

(1,149

)

 

 

(2,153

)

Cash and Cash Equivalents at Beginning of Year

 

 

2,694

 

 

 

4,847

 

Cash and Cash Equivalents at End of Year

 

$

1,545

 

 

$

2,694

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to Property, Plant and Equipment included within Investing Activities:

 

 

 

 

 

 

 

 

Capital expenditures incurred

 

$

(2,992

)

 

$

(2,180

)

Increase (decrease) in related liabilities

 

 

163

 

 

 

83

 

Additions to property, plant and equipment

 

$

(2,829

)

 

$

(2,097

)

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

 

 

 

Fourth

 

 

Fourth

 

 

Third

 

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

 

2019

 

 

2018

 

 

2019

 

Capital and Exploratory Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

E&P Capital and exploratory expenditures

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

North Dakota

 

$

369

 

 

$

314

 

 

$

350

 

Offshore and Other

 

 

173

 

 

 

107

 

 

 

107

 

Total United States

 

 

542

 

 

 

421

 

 

 

457

 

Guyana

 

 

274

 

 

 

128

 

 

 

161

 

Malaysia and JDA

 

 

28

 

 

 

24

 

 

 

24

 

Other

 

 

32

 

 

 

45

 

 

 

19

 

E&P Capital and exploratory expenditures

 

$

876

 

 

$

618

 

 

$

661

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total exploration expenses charged to income included above

 

$

64

 

 

$

49

 

 

$

37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Midstream Capital expenditures

 

$

108

 

 

$

67

 

 

$

112

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

 

 

 

 

2019

 

 

2018

 

Capital and Exploratory Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

E&P Capital and exploratory expenditures

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

North Dakota

 

 

 

 

 

$

1,312

 

 

$

967

 

Offshore and Other

 

 

 

 

 

 

471

 

 

 

411

 

Total United States

 

 

 

 

 

 

1,783

 

 

 

1,378

 

Guyana

 

 

 

 

 

 

783

 

 

 

383

 

Malaysia and JDA

 

 

 

 

 

 

109

 

 

 

123

 

Other

 

 

 

 

 

 

68

 

 

 

185

 

E&P Capital and exploratory expenditures

 

 

 

 

 

$

2,743

 

 

$

2,069

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total exploration expenses charged to income included above

 

 

 

 

 

$

167

 

 

$

160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Midstream Capital expenditures

 

 

 

 

 

$

416

 

 

$

271

 

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)

 

 

 

Fourth Quarter 2019

 

Income Statement

 

United States

 

 

International

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and non-operating income

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other operating revenues

 

$

1,327

 

 

$

356

 

 

$

1,683

 

Other, net

 

 

3

 

 

 

4

 

 

 

7

 

Total revenues and non-operating income

 

 

1,330

 

 

 

360

 

 

 

1,690

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

 

456

 

 

 

8

 

 

 

464

 

Operating costs and expenses

 

 

194

 

 

 

82

 

 

 

276

 

Production and severance taxes

 

 

50

 

 

 

2

 

 

 

52

 

Midstream tariffs

 

 

213

 

 

 

 

 

 

213

 

Exploration expenses, including dry holes and lease impairment

 

 

71

 

 

 

35

 

 

 

106

 

General and administrative expenses

 

 

56

 

 

 

7

 

 

 

63

 

Depreciation, depletion and amortization

 

 

414

 

 

 

133

 

 

 

547

 

Total costs and expenses

 

 

1,454

 

 

 

267

 

 

 

1,721

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results of operations before income taxes

 

 

(124

)

 

 

93

 

 

 

(31

)

Provision (benefit) for income taxes

 

 

 

 

 

33

 

 

 

33

 

Net income (loss) attributable to Hess Corporation

 

$

(124

)

(b)

$

60

 

 

$

(64

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter 2018

 

Income Statement

 

United States

 

 

International

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and non-operating income

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other operating revenues

 

$

1,273

 

 

$

377

 

 

$

1,650

 

Other, net

 

 

9

 

 

 

8

 

 

 

17

 

Total revenues and non-operating income

 

 

1,282

 

 

 

385

 

 

 

1,667

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

 

478

 

 

 

12

 

 

 

490

 

Operating costs and expenses

 

 

173

 

 

 

65

 

 

 

238

 

Production and severance taxes

 

 

40

 

 

 

3

 

 

 

43

 

Midstream tariffs

 

 

165

 

 

 

 

 

 

165

 

Exploration expenses, including dry holes and lease impairment

 

 

27

 

 

 

64

 

 

 

91

 

General and administrative expenses

 

 

46

 

 

 

9

 

 

 

55

 

Depreciation, depletion and amortization

 

 

370

 

 

 

129

 

 

 

499

 

Total costs and expenses

 

 

1,299

 

 

 

282

 

 

 

1,581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results of operations before income taxes

 

 

(17

)

 

 

103

 

 

 

86

 

Provision (benefit) for income taxes

 

 

(24

)

 

 

115

 

 

 

91

 

Net income (loss) attributable to Hess Corporation

 

$

7

 

(c)

$

(12

)

 

$

(5

)

(a)

Includes amounts charged from the Midstream segment.

(b)

After-tax losses from realized crude oil hedging activities totaled $2 million (noncash premium amortization: $29 million; cash received: $27 million).

(c)

After-tax losses from realized crude oil hedging activities totaled $44 million (noncash premium amortization: $48 million; cash received: $4 million).

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)

 

 

 

Third Quarter 2019

 

Income Statement

 

United States

 

 

International

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and non-operating income

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other operating revenues

 

$

1,212

 

 

$

368

 

 

$

1,580

 

Other, net

 

 

 

 

 

17

 

 

 

17

 

Total revenues and non-operating income

 

 

1,212

 

 

 

385

 

 

 

1,597

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

 

423

 

 

 

30

 

 

 

453

 

Operating costs and expenses

 

 

182

 

 

 

69

 

 

 

251

 

Production and severance taxes

 

 

46

 

 

 

1

 

 

 

47

 

Midstream tariffs

 

 

182

 

 

 

 

 

 

182

 

Exploration expenses, including dry holes and lease impairment

 

 

27

 

 

 

23

 

 

 

50

 

General and administrative expenses

 

 

42

 

 

 

9

 

 

 

51

 

Depreciation, depletion and amortization

 

 

390

 

 

 

117

 

 

 

507

 

Total costs and expenses

 

 

1,292

 

 

 

249

 

 

 

1,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results of operations before income taxes

 

 

(80

)

 

 

136

 

 

 

56

 

Provision (benefit) for income taxes

 

 

 

 

 

116

 

 

 

116

 

Net income (loss) attributable to Hess Corporation

 

$

(80

)

(b)

$

20

 

 

$

(60

)

(a)

Includes amounts charged from the Midstream segment.

(b)

After-tax gains from realized crude oil hedging activities totaled $2 million (noncash premium amortization: $29 million; cash received: $31 million).

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)

 

 

 

Year Ended December 31, 2019

 

Income Statement

 

United States

 

 

International

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and non-operating income

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other operating revenues

 

$

5,043

 

 

$

1,452

 

 

$

6,495

 

Gains (losses) on asset sales, net

 

 

22

 

 

 

 

 

 

22

 

Other, net

 

 

4

 

 

 

47

 

 

 

51

 

Total revenues and non-operating income

 

 

5,069

 

 

 

1,499

 

 

 

6,568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

 

1,798

 

 

 

51

 

 

 

1,849

 

Operating costs and expenses

 

 

693

 

 

 

278

 

 

 

971

 

Production and severance taxes

 

 

176

 

 

 

8

 

 

 

184

 

Midstream tariffs

 

 

722

 

 

 

 

 

 

722

 

Exploration expenses, including dry holes and lease impairment

 

 

144

 

 

 

89

 

 

 

233

 

General and administrative expenses

 

 

176

 

 

 

28

 

 

 

204

 

Depreciation, depletion and amortization

 

 

1,489

 

 

 

488

 

 

 

1,977

 

Total costs and expenses

 

 

5,198

 

 

 

942

 

 

 

6,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results of operations before income taxes

 

 

(129

)

 

 

557

 

 

 

428

 

Provision (benefit) for income taxes

 

 

 

 

 

375

 

 

 

375

 

Net income (loss) attributable to Hess Corporation

 

$

(129

)

(b)

$

182

 

 

$

53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2018

 

Income Statement

 

United States

 

 

International

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and non-operating income

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other operating revenues

 

$

4,842

 

 

$

1,481

 

 

$

6,323

 

Gains (losses) on asset sales, net

 

 

14

 

 

 

13

 

 

 

27

 

Other, net

 

 

25

 

 

 

28

 

 

 

53

 

Total revenues and non-operating income

 

 

4,881

 

 

 

1,522

 

 

 

6,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

 

1,777

 

 

 

56

 

 

 

1,833

 

Operating costs and expenses

 

 

697

 

 

 

244

 

 

 

941

 

Production and severance taxes

 

 

165

 

 

 

6

 

 

 

171

 

Midstream tariffs

 

 

648

 

 

 

 

 

 

648

 

Exploration expenses, including dry holes and lease impairment

 

 

119

 

 

 

243

 

 

 

362

 

General and administrative expenses

 

 

230

 

 

 

28

 

 

 

258

 

Depreciation, depletion and amortization

 

 

1,297

 

 

 

451

 

 

 

1,748

 

Total costs and expenses

 

 

4,933

 

 

 

1,028

 

 

 

5,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results of operations before income taxes

 

 

(52

)

 

 

494

 

 

 

442

 

Provision (benefit) for income taxes

 

 

(63

)

 

 

454

 

 

 

391

 

Net income (loss) attributable to Hess Corporation

 

$

11

 

(c)

$

40

 

 

$

51

 

(a)

Includes amounts charged from the Midstream segment.

(b)

After-tax gains from realized crude oil hedging activities totaled $1 million (noncash premium amortization: $116 million; cash received: $117 million).

(c)

After-tax losses from realized crude oil hedging activities totaled $173 million (noncash premium amortization: $172 million; cash paid: $1 million). After-tax noncash losses from unrealized crude oil hedging activities totaled $10 million.

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA

 

 

 

Fourth

 

 

Fourth

 

 

Third

 

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

 

2019

 

 

2018

 

 

2019

 

Net Production Per Day (in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil - barrels

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

North Dakota (a)

 

 

106

 

 

 

84

 

 

 

96

 

Offshore

 

 

46

 

 

 

48

 

 

 

40

 

Total United States

 

 

152

 

 

 

132

 

 

 

136

 

Denmark

 

 

6

 

 

 

6

 

 

 

6

 

Libya

 

 

19

 

 

 

20

 

 

 

20

 

Malaysia and JDA

 

 

5

 

 

 

3

 

 

 

4

 

Guyana

 

 

1

 

 

 

 

 

 

 

Total

 

 

183

 

 

 

161

 

 

 

166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas liquids - barrels

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

North Dakota (a)

 

 

46

 

 

 

32

 

 

 

47

 

Offshore

 

 

6

 

 

 

5

 

 

 

5

 

Total United States

 

 

52

 

 

 

37

 

 

 

52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas - mcf

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

North Dakota (a)

 

 

133

 

 

 

79

 

 

 

125

 

Offshore

 

 

105

 

 

 

90

 

 

 

84

 

Total United States

 

 

238

 

 

 

169

 

 

 

209

 

Denmark

 

 

8

 

 

 

9

 

 

 

6

 

Libya

 

 

15

 

 

 

13

 

 

 

12

 

Malaysia and JDA

 

 

357

 

 

 

354

 

 

 

336

 

Total

 

 

618

 

 

 

545

 

 

 

563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Barrels of oil equivalent

 

 

338

 

 

 

289

 

 

 

312

 

(a)

Net production from the Bakken was 174,000 boepd in the fourth quarter of 2019, 126,000 boepd in the fourth quarter of 2018 and 163,000 boepd in the third quarter of 2019.

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA

 

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

Net Production Per Day (in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil - barrels

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

North Dakota (a)

 

 

94

 

 

 

77

 

Offshore

 

 

46

 

 

 

41

 

Total United States

 

 

140

 

 

 

118

 

Denmark

 

 

6

 

 

 

6

 

Libya

 

 

19

 

 

 

18

 

Malaysia and JDA

 

 

4

 

 

 

4

 

Total

 

 

169

 

 

 

146

 

 

 

 

 

 

 

 

 

 

Natural gas liquids - barrels

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

North Dakota (a)

 

 

42

 

 

 

31

 

Offshore

 

 

5

 

 

 

5

 

Other (b)

 

 

 

 

 

3

 

Total United States

 

 

47

 

 

 

39

 

 

 

 

 

 

 

 

 

 

Natural gas - mcf

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

North Dakota (a)

 

 

110

 

 

 

76

 

Offshore

 

 

91

 

 

 

67

 

Other (b)

 

 

 

 

 

38

 

Total United States

 

 

201

 

 

 

181

 

Denmark

 

 

7

 

 

 

8

 

Libya

 

 

13

 

 

 

12

 

Malaysia and JDA

 

 

351

 

 

 

352

 

Total

 

 

572

 

 

 

553

 

 

 

 

 

 

 

 

 

 

Barrels of oil equivalent

 

 

311

 

 

 

277

 

(a)

Net production from the Bakken was 152,000 boepd for the year ended December 31, 2019 and 117,000 boepd for the year ended December 31, 2018.

(b)

The Corporation sold its joint venture interests in the Utica shale play in August 2018. Net production was 9,000 boepd for the year ended December 31, 2018.

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA

 

 

 

Fourth

 

 

Fourth

 

 

Third

 

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

 

2019

 

 

2018

 

 

2019

 

Sales Volumes Per Day (in thousands) (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil - barrels

 

 

179

 

 

 

158

 

 

 

169

 

Natural gas liquids - barrels

 

 

52

 

 

 

37

 

 

 

52

 

Natural gas - mcf

 

 

618

 

 

 

545

 

 

 

563

 

Barrels of oil equivalent

 

 

334

 

 

 

286

 

 

 

315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Volumes (in thousands) (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil - barrels

 

 

16,467

 

 

 

14,587

 

 

 

15,593

 

Natural gas liquids - barrels

 

 

4,749

 

 

 

3,395

 

 

 

4,756

 

Natural gas - mcf

 

 

56,810

 

 

 

50,095

 

 

 

51,782

 

Barrels of oil equivalent

 

 

30,684

 

 

 

26,331

 

 

 

28,979

 

 

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

Sales Volumes Per Day (in thousands) (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil - barrels

 

 

167

 

 

 

144

 

Natural gas liquids - barrels

 

 

47

 

 

 

39

 

Natural gas - mcf

 

 

572

 

 

 

553

 

Barrels of oil equivalent

 

 

309

 

 

 

275

 

 

 

 

 

 

 

 

 

 

Sales Volumes (in thousands) (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil - barrels

 

 

61,061

 

 

 

52,742

 

Natural gas liquids - barrels

 

 

17,067

 

 

 

14,019

 

Natural gas - mcf

 

 

208,665

 

 

 

202,041

 

Barrels of oil equivalent

 

 

112,906

 

 

 

100,435

 

(a)

Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported.

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA

 

 

 

Fourth

 

 

Fourth

 

 

Third

 

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

 

2019

 

 

2018

 

 

2019

 

Average Selling Prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil - per barrel (including hedging)

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

Onshore

 

$

51.83

 

 

$

49.95

 

 

$

53.03

 

Offshore

 

 

56.48

 

 

 

58.46

 

 

 

58.72

 

Total United States

 

 

53.25

 

 

 

53.02

 

 

 

54.72

 

Denmark

 

 

63.09

 

 

 

65.48

 

 

 

63.13

 

Libya

 

 

64.32

 

 

 

65.91

 

 

 

62.28

 

Malaysia and JDA

 

 

62.18

 

 

 

61.58

 

 

 

58.55

 

Worldwide

 

 

54.90

 

 

 

55.24

 

 

 

56.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil - per barrel (excluding hedging)

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

Onshore

 

$

52.01

 

 

$

53.44

 

 

$

52.88

 

Offshore

 

 

56.68

 

 

 

61.93

 

 

 

58.56

 

Total United States

 

 

53.43

 

 

 

56.51

 

 

 

54.57

 

Denmark

 

 

63.09

 

 

 

65.48

 

 

 

63.13

 

Libya

 

 

64.32

 

 

 

65.91

 

 

 

62.28

 

Malaysia and JDA

 

 

62.18

 

 

 

61.58

 

 

 

58.55

 

Worldwide

 

 

55.05

 

 

 

58.11

 

 

 

55.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas liquids - per barrel

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

Onshore

 

$

13.81

 

 

$

21.34

 

 

$

9.55

 

Offshore

 

 

14.31

 

 

 

20.23

 

 

 

7.93

 

Worldwide

 

 

13.87

 

 

 

21.19

 

 

 

9.41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas - per mcf

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

Onshore

 

$

1.49

 

 

$

3.02

 

 

$

1.32

 

Offshore

 

 

1.90

 

 

 

3.66

 

 

 

1.89

 

Total United States

 

 

1.67

 

 

 

3.36

 

 

 

1.55

 

Denmark

 

 

3.73

 

 

 

3.93

 

 

 

3.74

 

Libya

 

 

4.48

 

 

 

4.44

 

 

 

5.11

 

Malaysia and JDA

 

 

4.64

 

 

 

5.55

 

 

 

5.18

 

Worldwide

 

 

3.48

 

 

 

4.82

 

 

 

3.81

 

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA

 

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

Average Selling Prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil - per barrel (including hedging)

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

Onshore

 

$

53.19

 

 

$

56.90

 

Offshore

 

 

59.18

 

 

 

62.02

 

Total United States

 

 

55.15

 

 

 

58.69

 

Denmark

 

 

66.29

 

 

 

70.08

 

Libya

 

 

64.91

 

 

 

69.64

 

Malaysia and JDA

 

 

61.81

 

 

 

70.42

 

Worldwide

 

 

56.77

 

 

 

60.77

 

 

 

 

 

 

 

 

 

 

Crude oil - per barrel (excluding hedging)

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

Onshore

 

$

53.18

 

 

$

60.64

 

Offshore

 

 

59.17

 

 

 

65.73

 

Total United States

 

 

55.14

 

 

 

62.41

 

Denmark

 

 

66.29

 

 

 

70.08

 

Libya

 

 

64.91

 

 

 

69.64

 

Malaysia and JDA

 

 

61.81

 

 

 

70.42

 

Worldwide

 

 

56.76

 

 

 

63.80

 

 

 

 

 

 

 

 

 

 

Natural gas liquids - per barrel

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

Onshore

 

$

13.20

 

 

$

21.29

 

Offshore

 

 

13.31

 

 

 

25.58

 

Worldwide

 

 

13.21

 

 

 

21.81

 

 

 

 

 

 

 

 

 

 

Natural gas - per mcf

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

Onshore

 

$

1.59

 

 

$

2.29

 

Offshore

 

 

2.12

 

 

 

2.68

 

Total United States

 

 

1.83

 

 

 

2.43

 

Denmark

 

 

3.81

 

 

 

3.61

 

Libya

 

 

5.07

 

 

 

4.95

 

Malaysia and JDA

 

 

5.04

 

 

 

5.07

 

Worldwide

 

 

3.90

 

 

 

4.18

 

 

The following is a summary of the Corporation’s outstanding crude oil put options for calendar year 2020:

 

 

WTI

 

 

Brent

 

Barrels of oil per day

 

130,000

 

 

20,000

 

Average monthly floor price

 

$55

 

 

$60

 

 

1 “Adjusted net income (loss)” is a non-GAAP financial measure. The definition of this non-GAAP measure and a reconciliation to its nearest GAAP equivalent measure appears on pages 7 and 8.

2 “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” is a non-GAAP financial measure. The definition of this non-GAAP measure and a reconciliation to its nearest GAAP equivalent measure appears on pages 7 and 8.

For Hess Corporation
Investors:
Jay Wilson
(212) 536-8940

Media:
Lorrie Hecker
(212) 536-8250

Jamie Tully
Sard Verbinnen & Co
(312) 895-4700

Source: Hess Corporation